If the production possibilities frontier were a straight line,
A)the Law of Increasing Cost would still apply.
B)the opportunity cost of producing one good would decrease as more of another good is produced.
C)the opportunity cost of producing one good would increase as more of another good is produced.
D)the opportunity cost of producing one good would remain the same as more of another good is produced.

Question

Quizplus · Accepted Answer

A straight line production possibilities frontier indicates a constant opportunity cost, meaning that the opportunity cost of producing one good remains the same regardless of how much of the other good is produced.

If the Production Possibilities Frontier Were a Straight Line